Emma RadmoreFCA has extended the temporary measures it put in place in March 2020 that mean it will not take action against firms who breach the requirement to issue 10% depreciation notices to retail investors under COBS so long as they have:
- issued at least one notification of depreciation in the current reporting period;
- told the notified investors that they may not receive additional notifications if there is a further 10% decrease;
- referred clients to how they can see generalised updates on market conditions; and
- reminded clients how to check their portfolio values.
The measures will now continue until the end of 2022.
FCA reminds firms that they must still of course comply with Principles 6 and 7 and will take appropriate action if it feels serious misconduct has harmed customers.
FCA will not take action against firms for services offered to professional investors so long as the clients have been allowed to opt in to receiving notifications.
